Your grandma has set up a fund of $1,000,000 for you. You have to invest this money in a fixed asset project. As a resul

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Your grandma has set up a fund of $1,000,000 for you. You have
to invest this money in a fixed asset project. As a result of your
feasibility study, you predict the following cash flow for the next
5 years:
 
Years Cash
flows DF (10%)
1

250,000

0.909
2

280,000
0.826
3


300,000
0.751
4

300,000

0.683
5

300,000
0.621
Scrap value of the project is expected to
be $400,000 assuming WACC is 10%;
a) Calculate the project's IRR and discounted payback
period.
b) Briefly state the selected location, which sector you chose,
and why.